Shell and Turkey sign oil and gas deal

Turkish petroleum company TPAO, and Royal Dutch Shell have come to terms on an agreement that will see the two companies search for and produce oil and gas together.

Signed on Wednesday, the deal will see the two companies searching for oil and natural gas offshore in the Mediterranean and onshore in the south east region of Turkey. As part of the deal, the two partners will share production in the Mediterranean on a 50-50 basis with an option that would see TPAO’s share increase depending on production.

The deal will also see TPAO take a 70 percent share in the shale gas production at a site near Diyabakir, the remaining 30 percent going to Shell.

Recently Turkey has been undertaking a seismic search for fuel sources in the Mediterranean. The deal between Turkey and Shell will allow for further searching and boost the chances of finding oil and gas in the Mediterranean.